Top Benefits of Subdividing Land for Property Owners
In many quarters, you will hear people talking about the best things that money can buy. Land ranks high up the list because rarely does it depreciate. In Australia, lot sizes have been shrinking, which depicts the fact that there is an increased demand for land. However, to get the most value for your newly acquired land, you should think about subdividing it. As the name suggests, land subdivision refers to the division of a property into smaller lots either for sale or development. This article highlights the benefits of land subdivision.
One of the main reasons why landowners subdivide their land is to get more money than they would otherwise get if they sold the property as one. A big parcel of land is likely to attract only a few buyers because many people cannot get the necessary financing to buy a single, large tract of land. Moreover, the few potential buyers that have the funds know how to haggle; therefore, you might end up selling a property at a lower price than you had anticipated. On the other hand, subdividing a parcel of land attracts several buyers because most find the cost of smaller lots affordable. Most importantly, the value of combined land subdivisions is more compared to a single whole.
Hold on to Part of the Land
There is no reason you should sell your entire parcel of land and remain with nothing to your name. Although some people do this, especially if they do not want to bother themselves with the annual land tax, it is not the best way to approach land subdivision. Saving some piece of land for yourself proves beneficial in the long run because the land will always appreciate. It is especially the case if the portions you have sold are being developed.
As mentioned earlier, subdividing a parcel of land allows you to sell single lots individually as and when you wish to. Since different buyers have varying plans for their lots, it is easy to choose who you sell the lots to and which buyers to ignore. The advantage here is that you get to decide which development will improve the remaining lots' marketability. For instance, selling part of your land to a buyer who plans to build a mall on it is a more marketable option for the other lots compared to a buyer than plans to build a residential home on one of the lots.
For more information, contact a land division service.